Iran running out of imported butter reserves

Business Materials 8 September 2020 15:15
Iran running out of imported butter reserves

TEHRAN, Iran, Sept.8


Iran's imported butter reserve is running out, and this has increased the prices in the market, said the chairman of Iran's dairy products union Ali Ehsan Zaffar, Trend reports via ILNA.

"Assigning official foreign currency rate to import of butter has been eliminated since last Iranian year (started March 21,2019), so the existing butter reserve is being used, which is running out," said Zaffar.

"The Consumers and Producers Protection Organization has not announced any new prices, and no permit has been issued to increase prices, but some production units have increased their prices," he said.

"Iran annually needs to import 40,000 to 45,000 tons of butter. Importing it with free market foreign currency rate would lead to high price, and naturally reduce consumption. The country has imported more than 30,000 tons of butter in the current Iranian year (started March 20,2020)," he added.

Zafar said that the government is aware of the issue, and may try to create new solutions to handle the problem, to save butter reserves.

"If the government supports dairy industries and animal husbandry, the shortage of imported butter would be compensated however if the issue continues the prices of dairy products would increase," he said.

"The country has capacity to become self-sufficient in butter production in 3 years and does not rely on import if the government supports the industry," he added.